Vladimir Putin's opening remarks:

Good afternoon, colleagues,

During a series of meetings on problems in the defence industry, close combat weapons have come up often in one way or another. Today we are having a special meeting on this issue here in Izhevsk, the acknowledged capital of Russian small arms production.

An analysis of the current trends shows that, along with high-precision weapons, aviation, anti-aircraft defence and reconnaissance systems, the world's leading countries are focusing on increasing the capabilities of each individual soldier.

Forward-looking combat systems are being developed for infantry. Personal armour is being made more reliable, while small arms ammunition, sights, and detection and reconnaissance systems are becoming more sophisticated. All of this is crucial, especially in special operations, including counterterrorism.

I would like to emphasise that our defence industry is currently capable of developing and manufacturing a full range of small arms and close combat weapons. Our high-capacity production facilities have historically been located here in Izhevks, as well as in Tula, Kovrov and Moscow.

Russian small arms and close combat weapons are superior to their foreign counterparts in many ways. Our weapons systems enjoy stable demand abroad. Suffice it to recall the Kalashnikov rifle, one of the most recognisable brand names in the world.

Nevertheless, as in other areas, we need to make progress. We should not rest on our laurels, but invest in developing new weapons and strengthening our competitive edge.

Otherwise there will be an inevitable lag with severe consequences, with a gap developing between the actual and future needs of the Armed Forces and the ability of the defence industry to meet these growing needs.

We have almost completed a special, integrated interagency programme for the development of combat systems for our troops. This programme will be in place until 2020. We still have to evaluate the effectiveness and adequacy of the proposed measures. I would also like to emphasise the following issues.

First, as soon as possible we need to establish technical design specifications for the full range of small weapons, from pistols to grenade launchers. Military experts and manufacturers should work together very closely, substantively and, most importantly, effectively.

Second, we need to clearly define the extent of government contracts for the development and serial production of new weapons. This is crucial for ensuring efficient and regular orders for the defence industry.

And, finally, my third point. We visited the production facility today. It is being renovated at present, but overall only about 5% of the defence industry is renovated each year, which is unsatisfactory. That's why we need clear and realistic plans for modernising production facilities, backed by adequate funding. As you know, by the end of this year we need to approve the next state arms procurement programme and make all the necessary adjustments. Indeed, we need to develop a new federal targeted programme for modernising the Russian defence industry.

We have held a number of meetings with top representatives from production facilities, the Ministry of Defence and the General Staff. The government is now finishing up these two documents. Our meeting today should also contribute to the development of these plans.

Let's get down to work.